Manufactured drift: NASDAQ gap down, here is the Friday trading plan

NASDAQ futures are coming into Friday gap down after an overnight session featuirng elevated range and volume. Price worked lower overnight, trading back down into Monday prices. As we approach cash open price is hovering around Monday’s midpoint. At 8:30am Consumer Price Index data came out slightly better-than-expected.

There is a monthly budget statement at 2pm and no other economic events.

Yesterday we printed a normal variation up. The day began flat and after a two-way morning auction price worked higher. We tagged the upper ATR band from the Sunday Strategy session 7505.25 nearly to the tick then began to drift lower.

Heading into today my primary expectation is for buyers to work into the overnight inventory and test up to 7460.25. Sellers reject a move back into Thursday’s range and two-way trade ensues.

Hypo 2 stronger buyers work a full gap fill up to 7475.75 and take out overnight high 7477.50. Look for sellers up at 7481.25 and two way trade to ensue.

Hypo 3 sellers gap-and-go lower. Look for buyers down at 7415.75 and two way trade to ensue.